The reduction of principal each month is equal to the payment minus the interest.

Name: The reduction of principal each month is equal to the payment minus the interest.
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This is because the payment made each month is applied towards both the principal amount and the interest accrued, with the interest being paid off first. The remaining amount is then subtracted from the principal, resulting in a reduction of the principal each month.

The Reduction of Principal Each Month Is Equal to the Payment